How do you build a resilient and sustainable economy in the 21st Century? Jamaica a logistics centred economy thriving in the Fourth Industrial Revolution
The future ain’t what it used to be. – Yogi Berra
Introduction
Artificial Intelligence (AI), robots, automation, and the Internet of Things (IoT) – the Fourth industrial Revolution – are all tech terms that have moved into the mainstream of our everyday conversations. Unfortunately the talk is usually one of doom and gloom, punctuated by predictions such as: Robots could displace 800 million jobs. With such grim predictions, who would not pay attention? So what can a small island developing state like Jamaica do to get ready for this future?
It’s important to understand that, as William Gibson stated: “The future is already here — it’s just not very evenly distributed.” The Fourth industrial Revolution is already here – it’s just not evenly distributed. And this represents an opportunity for Jamaica.
The Fourth Industrial Revolution can be boiled down to three things:
1. Connectivity
2. Flows
3. Management of connectivity and flows.
In a word: logistics.
Competitiveness, in our globalized world is increasingly based on one’s ability to understand, connect and manoeuvre within and between the various networks that make the world work. The Logistics Performance Index (LPI) 2014 put it succinctly:
Improving logistics performance is at the core of the economic growth and competitiveness agenda.
The Government of Jamaica (GOJ) has embarked on an ambitious long-term programme that will transform Jamaica into a Logistics Centred Economy. Jamaica’s Global Logistics Hub Initiative is Jamaica’s response for building a resilient and sustainable nation in the Fourth Industrial Revolution.
Jamaica’s Global Logistics Hub Initiative is Jamaica’s response for building a resilient and sustainable nation in the Fourth Industrial Revolution Click To TweetThe Fourth Industrial Revolution
Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, explains the Fourth Industrial Revolution in the following way:
The Fourth Industrial Revolution isn’t just about artificial intelligence, robots, smart machines, augmented reality or connecting them all together in an internet of things. As important as all this is, the Fourth Industrial Revolution at the end of the day isn’t about machines but about humans – the way we live, learn, earn and play. As the Fourth Industrial Revolution continues to evolve, the future of work will increasingly be defined by the use of digital technology not to simply supplant humans but to augment human ability and experiences. This evolution will be an easy and/or a seamless process, far from it.
The technological changes being witness now, as with any evolution/revolution, will cause massive distributions particularity in the world of work as we continue to adjust to the new realities. However, it must also be remembered that with distribution will come new opportunities. We have already seen many jobs, such as social media manager, that didn’t exist a few years ago being created that we not only consider normal but indispensable.
How can a small island developing state like Jamaica thrive in the Fourth Industrial Revolution?
The answer is simply, having and implementing a vision that will allow it to secure its future in this age of disruption – the Global Logistics Hub Initiative. Jamaica’s Global Logistics Hub Initiative is Jamaica’s response for building a resilient and sustainable nation in the Fourth Industrial Revolution.
Transforming Jamaica: a Logistics Centred Economy
The transformational process of developing a Logistics Centred Economy will force Jamaican policy makers and businesses alike to look at the entire global manufacturing and service delivery supply and value chains to see where value can be created or captured. This will range from the conceptualization of ideas to research & development to production, all the way through to consumption and with greater emphasis being placed on being sustainable, now all the way to recycling. Jamaica, is being re-positioned as a platform to attract a variety of firms seeking to add and or capture value along global value chains.
A Logistics Centred Economy consists of a variety of interrelated networks of both hard and soft infrastructure developed by the public and private sectors. These networks include various types of transport, informational channels and systems, means of communication and locomotion, storage facilities, external provision of energy resources, financial systems, supply arrangements, logistics processes, service companies, etc. In a Logistics Centred Economy, stakeholders, primarily businesses, efficiently manage the movements of goods and services along the production or service delivery supply/value chain and continuously adjust themselves to new challenges and opportunities of a globalized world.
A model for Jamaica
The model of Jamaica’s Logistics Centred Economy is based on adopting and adapting global best practices with a view of optimizing Jamaica’s existing assets to realize their full potential and create new opportunities and benefits. As such, the Government of Jamaica has examined what has and has not worked for other countries, particularly the Netherlands (Rotterdam), the United Arab Emirates (Dubai) and Singapore, as guidelines for constructing a vision and the development and execution of an implementation plan.
The model of Jamaica’s Logistics Centred Economy takes note of the lessons learned from other countries but firmly factors in Jamaica’s social, economic and political development. Furthermore, Jamaica’s Logistics Centred Economic model is not static but dynamic and adapts itself to change.
Jamaica’s Logistics Centred Economic model is not static but dynamic and adapts itself to change. Click To TweetThe model:
Geo-strategic Location + Natural Endowments + Existing Assets (green and brown field) + Human Resources + Global Trade/Logistics Trends + Value Added Clusters (e.g. Special Economic Zones) + Globally Integrated Businesses (especially small local businesses) + International Economic Engagement = Jamaica’s Logistics Centred Economy
It is important to note that while it is called a Logistics Centred Economy, it is not only about the logistics industry – the business of managing the flow of things between the point of origin and the point of consumption in order to meet the requirements of customers. The industry; be it shipping, to picking and packing to packaging and labeling, is the glue that keeps the various interrelated networks connected. The Global Logistics Hub Initiative is therefore best understood as a platform to network Jamaica into global trade – a connected trade hub.
the Global Logistics Hub Initiative is therefore best understood as a platform to network Jamaica into global trade – a connected trade hub. Click To TweetConnecting the dots: the Fourth Industrial Revolution and Jamaica’s Global Logistics Hub Initiative
The Fourth Industrial Revolution can be boiled down to three things:
1. Connectivity
Connectivity is often synonymous with digital or technological connectivity, and rightfully so as it is a major means and mode of connectivity. Connectivity, in the Fourth Industrial Revolution, however is more about relationships. That is to say the relationships “between people-people, people-things, and things-things.”
2. Flows
Flows are movement of goods, services, people, data and money that characterize global commerce. Tom Friedman in his book, Thank You for being late: An Optimist’s Guide to Thriving in the Age of Accelerations, that I recently had the pleasure of reading, highlights the importance of flows and what is at stake for individuals, businesses and governments, alike:
[T]his isn’t complicated: the most educated people who plug into the most flows and enjoy the best governance and infrastructure win. – Thomas Friedman
3. Management of connectivity and flows.
The management of connectivity and flows is where I get the most existed as this is where the glue of global trade, logistics, plays its part in the Forth Industrial Revolution.
Logistics is:
The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. – The Council of Supply Chain Management Professionals
Competitiveness, in our globalized world is increasingly based on ones ability to understand, connect and maneuverer within and between the various networks that make the world work. The Logistics Performance Index 2014 put it succinctly:
Improving logistics performance is at the core of the economic growth and competitiveness agenda.
Jamaica’s Global Logistics Hub Initiative is Jamaica’s response for building a competitive, resilient and sustainable nation in the era of the Fourth Industrial Revolution.
Top ten (10) Technologies that characterize the Fourth Industrial Revolution
The Fourth Industrial Revolution is often characterize, but not limited to the following ten technologies:
1. Advance materials
2. Cloud technology
3. Autonomous vehicles
4. Synthetic biology
5. Virtual and Augmented Reality
6. Artificial Intelligence
7. Robots
8. Blockchain
9. 3D Printing
10. Internet of things
The question then arises how is Jamaica readying itself and or expressing itself through the use of these technologies in a logistics centred economy?
Some of the answers may just surprise you. Stay tuned.
